LIVINGSTONE MARUFU
Zimbabwe’s cooking oil companies are pushing for the development of localised value chain, a move which is expected to save the elusive foreign currency and reduce import dependency.
The call comes at a time when Covid-19 pandemic induced lockdowns across the world have disrupted supply chains for some manufacturers who depend on imports for their production processes.
Oil Expressers Association of Zimbabwe president Busisa Moyo told Business Times this week that promotion of the local value chain was critical.
This, Moyo said, would also promote land utilisation, job creation and will push up production.
“We have to continue doing what the Ministry of Industry and Commerce as well as the Lands, Agriculture, Fisheries, Water and Rural Resettlement ministry are doing to promote local value chain development to reduce import dependency,” Moyo told Business Times.
He added: “This also includes criminalising side marketing of contracted grains, allocating land for joint venture and corporate farming similar to that in sugar and barley, utilisation of land around large water bodies for irrigation similar to Mpongwe in Zambia and mechanisation and upgrading of farming methods to improve oilseed yields among youth and women.”
Moyo said the importation of raw materials was difficult during lockdowns imposed by governments across the globe to curb the spread of Covid-19 pandemic.
The closure of borders has had serious repercussions on Zimbabwe.
ZimTrade chief executive Allan Majuru said it would be a while before countries fully restore global trade of non-essential products with the unpredictability of Covid-19.
This, Majuru said, would have negative implications on local manufacturing companies that import most of their raw materials.
“These raw materials are no longer as accessible as before, indicating an urgent need to increase local production and develop alternative sources to get raw materials.
“To address the challenges, it is also important to look beyond the immediate crisis and start to work around requirements of the new normal. The new normal should place emphasis on development and strengthening of local value chains, which in turn leads to import substitution, particularly of raw materials,” Majuru said.
He said the Covid-19 induced travel bans have revealed how many local players across all sectors must develop their value chains so that they maximise revenue and cushion themselves from global shocks.
“The impact of such trade bans can be mitigated if local value chains are developed to ensure the consistent availability of key products that are produced within Zimbabwean borders.
“This means product value chain stakeholders across all sectors should move with speed to engage local suppliers so that they develop capacities and accelerate the import substitution drive in order to maximise their export revenue,” Majuru said.
